The financial technology associations of Thailand and Hungary have signed a bilateral memorandum of understanding to promote the adoption of blockchain technology in their respective financial sectors.
Signed by the Thai Fintech Association and the Hungarian Blockchain Coalition on October 25, the MOU predicts that the two associations “will share experiences and best practices, as well as explore areas that could be beneficial for direct cooperation,” as stated in one. Facebook post of the Hungarian Embassy in Bangkok.
This was stated by the president of the Thai fintech association Chonladet Khemarattana according to a report the Bangkok Post on October 29 that e-commerce, mobile payments and digital currencies are growing rapidly in Thailand and international cooperation is needed to advance local financial technology.
It also claimed that 20% of cryptocurrency owners around the world live in Thailand. The country is included in the Global Crypto Adoption Index 2022 published in September by the analyst firm Chainalysis released at number 8 and the crypto payment company TripleA appreciatethat almost 6.5% of the population owns cryptocurrencies.
The Hungarian Blockchain Coalition was jointly founded in March 2022 by the Hungarian Ministry of Innovation and Technology and the National Data and Economy Knowledge Center. The Thai Fintech Association is a non-profit organization founded in 2016. Their goal is to promote the local financial technology industry and cryptocurrency exchanges.
This declaration of intent came in September when the Central Bank of Thailand, together with some commercial banks in the country, participated in a trial of a cross-border transaction platform to Central bank digital currencies (CBDC) using distributed ledger technology involved Has.
Central Bank of Thailand announced in August that it plans to pilot a retail CBDC with around 10,000 users by the end of 2022 launch. He wants to test the digital currency for “cash-like activities” such as paying for goods or services.
This year the Thai Securities Regulator imposed some restrictions on cryptocurrencies and the use of cryptocurrency in March prohibited for payments. He explained why these could “endanger the stability of the financial system”.
The regulator is also cracking down on cryptocurrency lending platforms. He wants cryptocurrency exchanges to forbidto offer or support digital asset custody services.
Hungary has an equally tough stance on cryptocurrencies. In February, Hungarian National Bank Governor György Matolcsy wanted cryptocurrency trading and mining across the European Union ban completely as they would encourage “illegal activities” and are “speculative”.